How Benchmark's Kevin Kelly Is Trading Alibaba

The video discusses the breakdown of sector correlations, particularly between the Dow and NASDAQ, and the rotation into defensive groups. It highlights the widening divergence in correlations since May, influenced by the Fed's rate hikes. Technology shows negative correlations with staples and utilities, while materials have a high correlation with technology. The market is still finding its footing, with sector rotations evident. An investment opportunity in Alibaba is explored, suggesting a strategy involving options to capitalize on its current market position.

What specific stock is mentioned as an opportunity, and what is the reasoning behind it?

What strategy is suggested for trading Alibaba, and what are the expected outcomes?